Gemini Exec Says UK Budget Brings Tougher Crypto Oversight but No Tax Hike

The UK’s latest budget, combined with ongoing regulatory reforms, indicates a clear shift toward more stringent oversight of the digital-asset sector, according to Azariah Nukajam, head of UK Compliance at crypto exchange Gemini.

Nukajam said that recent developments—including the Draft Statutory Instrument (SI), the introduction of the Cryptoassets Order in May 2025, and the upcoming CARF tax-transparency regime—show that the UK is pushing ahead with a more “traditional finance”-style regulatory environment for crypto.

No Tax Hike Seen as Positive Sign

The budget confirmed that there will be no increases to tax rates applied to crypto transactions. Nukajam welcomed this decision, noting that treating crypto “like any other asset class” helps reinforce its long-term viability as an alternative investment.

Crypto in the UK is currently subject to capital gains tax between 18% and 24%, depending on a person’s income band. Nukajam argued this gives the UK a competitive advantage over certain European jurisdictions, including Spain—where rates can reach 28%—and France, where lawmakers recently backed a measure that would classify high-value crypto holdings over €1.3 million as “unproductive wealth,” regardless of whether profits were made.

Regulators Focus on Compliance and Transparency

Despite unchanged tax rates, the compliance direction is clear, Nukajam said. HMRC has increased the number of warning letters sent to people suspected of underpaying crypto tax, while the forthcoming CARF framework—expected in 2026 — will greatly expand government visibility over crypto transactions.

“The government’s priority is to close tax loopholes and increase reporting and compliance standards across the crypto sector,” she said.

UK Pushes to Become a Global Crypto Hub

Nukajam added that a stronger regulatory framework could ultimately benefit regulated platforms such as Gemini, helping them integrate into mainstream UK finance and build trust with both institutional and retail users.

“Creating this environment will ensure that regulated crypto firms like Gemini… can position themselves as part of mainstream UK finance,” she said, adding that Gemini’s long-standing focus on compliance and security prepares it well for the incoming rules.

She argued that the UK still has an opportunity to establish itself as a leading jurisdiction for digital assets, provided it maintains favourable tax conditions and aligns regulatory approaches with other global markets. She also pointed to Germany’s tax exemption for crypto held more than one year as a policy the UK could consider adopting to incentivise long-term investment.